SEOUL: LG Electronics , the world's third-largest maker of unstationary phones, posted an unexpected support respectable trimonthly disappointment after a slump in handset sales and debase earnings from tellingly appliances. The first-quarter after taxes loss was 15.8 billion won ($15 million), compared with 674.6 billion won improve a year earlier, Seoul-based LG said in a statementon Wednesday. Analysts predicted promote of 56.6 billion won, based on the mean of 11 estimates compiled by Bloomberg in the old times 28 days.
Sales were spoonful changed at 13.2 trillion won. The mobile-phone transaction posted a bereavement for a fourth sedate district after LG's Optimus smartphones failed to imbibe demand dole out from models by Apple Inc. (AAPL) and Samsung Electronics Co.
LG is counting on smartphones and 3-D TVs to helper Korea's second-largest electronics maker to stir up again profitability. "They don't indeed have a affair that can take flight above others ," said Song Seong Yeob, a store boss at Seoul-based KB Asset Management Co., which manages $21 billion in assets. "Their be of profit to latitude essentially hinges on the handset function but I'm still not secure how well it will do." LG climbed 0.5% to 105,000 won at the 3 p.m. clinch of trading on the Korea Exchange, while the benchmark Kospi measure (KOSPI ) was sparse changed.
Losses at units including LG Display contributed to the realize privation in the victory quarter, LG said. The retinue had an operating help of 130.8 billion won, a 73% pinch from a year earlier. The mobilephone partitionment had an operating collapse of 100.5 billion won, as shipments flatten 10% from terminating year, LG said.
"We still have many weaknesses ," leading economic cop David Jung said at a briefing in Seoul. "We still have a prolonged road to go." Sales and wages will uplift this quarter, as supplementary smartphones and TVs featuring 3-D functions go on sale, and the handset component may gain to realize in the second half, he said. LG expects smartphones to advantage for about 20 percent of its overall handset sales this year, as it aims to encourage mobile- phone sales by 30 percent. The train will drop by drop mark down the issue of unprofitable models this year, Jung said.
A guide creative model to drive sales in the sponsor quarter is the Optimus 3D, which is effectual of recording 3-D images, LG said. The public limited company to all intents and purposes sold more than 2 million Optimus One phones in the at the outset quarter, according to Daiwa Securities Group Inc. In November, the symbol became LG's key smartphone to supply more than 1 million units. The home-entertainment disagreement that makes TVs had an operating serve of 82.1 billion won, falling from the 149.7 billion won a packet a year earlier. Sales mow 4.8 percent after intensifying contest led the presence to shortened prices.
The turn for the better in spending on liquid-crystal-display televisions has been "particularly slow," as the modern development models equipped with 3-D functionality and Web-based services failed to put together unusual demand, James Song, an analyst at Daewoo Securities Co., wrote in a March 15 article. The commonplace bonus of flatscreen TVs in the U.S. prostrate for a third agreed month in February as makers tried to excuse inventory before rolling out unfamiliar models, according to IHS ISuppli, a inquiry institution in El Segundo, California.
LG expects sales of its 3-D TVs to increment inertia from April as stores in the U.S. and greater European markets cause to spring stocking its most recent models, Havis Kwon, manage of the company's TV business, said April 6.
LG aims to increase its TV buy and sell helping to 16 percent this year from about 12 percent in 2010 by introducing additional models proficient of showing 3-D images and connecting to the Web, Kwon said in February. Profit at the home-appliance sector hew 50 percent to 102.7 billion won, missing the 132.2 billion won median of five analyst estimates surveyed by Bloomberg News.
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